Before opting for a debt instrument, investors are often recommended to check the credit rating. Higher the rating, the safer the instrument and conversely, the lower the rating, the riskier the investment.
However, one may wonder what are the criteria based on which these agencies such as CRISIL and ICRA rate the financial products. Each agency may have different criteria to judge the instrument’s credibility. What if one agency is more liberal, while the other is more stringent in its evaluation criteria?
